by Suhas Chaphalkar
To a layman observer, HR is just about “managing the organization’s Human Resources” while being oblivious to the other various facets involved in any modern HR function. It’s only upon having a closer look at the operational aspects of HR that one realizes the actual impact HR can potentially have in today’s world of business. And technology plays a crucial role in determining how big an impact HR can have.
Although there are a multitude of interesting changes taking place in the HR Technology and Support Services space, I would like to outline here the Top 5 trends that are expected to have a major impact.
Everything is changing, and quickly, including the types of HR technology in use, the experiences those systems deliver and the underlying software designs making many of the traditional HR systems purchased only a decade ago seem out of date.
We can’t talk about disruptive technology without discussing the massive strides that have taken place in this field. Companies now are showing a strong preference for cloud-based platforms such as SAP SuccessFactors rather than building their own or investing in complex, time-consuming and prohibitively expensive enterprise HR solutions.
Increased adoption of mobile solutions
There is a visibly increased focus on building tools that are not just easy to use but also easy to access. In today’s world of hyper-connectivity and mobile workforce, organizations need to support on-the-move access to its HR Technology and services for its Managers, Employees as well as the HR function to enable seamless, anytime, anywhere solutions.
While investment to date is on track for a slight decline from last year, deal activity in HR tech has grown consistently in the last 5 years and at the current rate is expected to increase more than 15 percent over 2015. This instability is being driven by the increased focus on mobile solutions and the emergence of video, social recruiting and wearable in the workplace.
AI & Analytics
Using AI as an HR function provides additional advantages by automating many of the processes that a Manager does on a daily basis that can be time-consuming and arduous at best. Some of the benefits are reducing human bias, selecting promising candidates from a large number of applicants and reduce administrative work.
HR departments are generating more data than ever before but at the same time, they often struggle to turn their data into valuable insights. New tools and technology are needed because big data is so big, fast-changing and potentially unstructured. With these tools, HR organizations are able to perform analytics and forecasting to make smarter and more accurate decisions, better measure efficiencies and identify management “blind spots” to answer important questions regarding workforce productivity, the impact of training programs on enterprise performance, predictors of workforce attrition, and how to identify potential leaders. The ability to capture and analyze big data has enabled many companies to both increase revenues by better understanding and more accurately targeting customers and cut costs through improved business processes.
There is another category of learning products coming that I call “learning experience platforms.” They focus on delivering a “learning platform” and not just a “learning management platform.” In other words, they are places to go to browse and learn, and not merely to register for courses.
There are two emerging markets that support the new way of working. The first is contingent workforce management systems. The second market is the gig-work networks that match workers to projects. The potential cost savings presented by the global gig economy can be attractive to HR teams as budgets go further. Technology is empowering social change. Our on-demand culture is changing how people want to earn a living. The freedom of being able to choose how, where and for whom you work is a huge benefit for the gig worker.
Understanding this trend helps the HR professional recruit, manage and develop a gig worker. For example, by introducing flexible working policies and investing in technology that supports remote working.The gig economy, it’s here to stay.
In conclusion, making the right software choice is quintessential for any and every HR organization as the use of technology to deliver HR services and how HR leverages technology to manage a firm’s human capital are the deciding factors that distinguish high – performing HR organizations from others.